HEICO Corporation Acquires Leading Surveillance Countermeasures Company
June 03 2019 - 8:30AM
Business Wire
HEICO Corporation (NYSE HEI.A and HEI) today announced that its
Electronic Technologies Group acquired 75% of the ownership of
Cookeville, TN-based Research Electronics International, LLC
(“REI”) in an all cash transaction. REI’s two owners/managers
retained the remaining 25% ownership. No further financial details
were disclosed.
HEICO expects the acquisition to be accretive to its earnings
within the first 12 months after closing.
REI is the leading designer and manufacturer of Technical
Surveillance Countermeasures (“TSCM”) equipment to detect devices
used for espionage and information theft. REI’s products, which are
fully designed and manufactured internally, are known as the most
advanced and user-friendly in the TSCM industry. REI’s customers
include government agencies, law enforcement, corporate security
personnel and TSCM professionals worldwide. REI’s equipment is in
use in over 100 countries.
REI was founded in 1983 by its President, Bruce Barsumian. Tom
Jones acquired 50% of REI and became its Chief Operating Officer in
1995. The two have been REI’s equal owners since then. Upon the
HEICO acquisition, Mr. Jones succeeded to the President’s position
and Mr. Barsumian is now REI’s Chief Scientist, at his request.
Both Mr. Barsumian and Mr. Jones remain committed to REI, as both
Team Members and substantial owners.
REI will continue to operate in its current 50,000 square foot,
state-of-the-art, fully-integrated and self-contained domestic
research, design, manufacturing and training facility located in
Cookeville, TN. Further, HEICO and REI stated that they do not
expect any staff turnover from among REI’s 65 highly-regarded Team
Members to result from the acquisition.
Bruce Barsumian and Tom Jones together commented, “Partnering
with HEICO is the right thing for our customers, Team Members,
suppliers and for our families. For more than 36 years, REI has
been the most innovative business in our field and we wanted to be
a part of a group that is committed to innovation, while also
treating its people well. We found that partner in HEICO and look
forward to a strong future together.”
Laurans A. Mendelson, HEICO’s Chairman and Chief Executive
Officer, along with Victor H. Mendelson, HEICO’s Co-President and
Chief Executive Officer of its Electronic Technologies Group,
jointly remarked, “From the moment we met Bruce and Tom, we knew
they and their company were perfect fits with HEICO’s culture.
Their passion for their products, customers, Team Members and
suppliers in a niche market greatly impressed us. We have no doubt
REI will continue to be the best in its field.”
Certain statements in this press release constitute
forward-looking statements, which are subject to risks,
uncertainties and contingencies. HEICO's actual results may differ
materially from those expressed in or implied by those
forward-looking statements as a result of factors including: lower
demand for commercial air travel or airline fleet changes or
airline purchasing decisions, which could cause lower demand for
our goods and services; product specification costs and
requirements, which could cause an increase to our costs to
complete contracts; governmental and regulatory demands, export
policies and restrictions, reductions in defense, space or homeland
security spending by U.S. and/or foreign customers or competition
from existing and new competitors, which could reduce our sales;
our ability to introduce new products and services at profitable
pricing levels, which could reduce our sales or sales growth;
product development or manufacturing difficulties, which could
increase our product development costs and delay sales; our ability
to make acquisitions and achieve operating synergies from acquired
businesses; customer credit risk; interest, foreign currency
exchange and income tax rates; economic conditions within and
outside of the aviation, defense, space, medical,
telecommunications and electronics industries, which could
negatively impact our costs and revenues; and defense spending or
budget cuts, which could reduce our defense-related revenue.
Parties receiving this material are encouraged to review all of
HEICO's filings with the Securities and Exchange Commission,
including, but not limited to filings on Form 10-K, Form 10-Q and
Form 8-K. We undertake no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise, except to the extent
required by applicable law.
HEICO Corporation is engaged primarily in the design,
production, servicing and distribution of products and services to
certain niche segments of the aviation, defense, space, medical,
telecommunications and electronics industries through its
Hollywood, Florida-based Flight Support Group and its Miami,
Florida-based Electronic Technologies Group. HEICO's customers
include a majority of the world's airlines and overhaul shops, as
well as numerous defense and space contractors and military
agencies worldwide, in addition to medical, telecommunications and
electronics equipment manufacturers. For more information about
HEICO, please visit our website at http://www.heico.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190603005140/en/
Victor H. Mendelson (305) 374-1745
Carlos L. Macau, Jr. (954) 987-4000
HEICO (NYSE:HEI)
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